SemGroup Investor Presentation March 2019s21.q4cdn.com › ... › SemGroup-Investor-Presentation-March-2019_FI… · We use our Investor Relations website and social media outlets

Investor Presentation

March 2019

2

Non-GAAP Financial MeasuresSemGroup’s non-GAAP measures, Adjusted EBITDA, Cash Available for Dividends (CAFD) and Total Segment Profit, are not GAAP measures and are not intended to be used inlieu of GAAP presentation of their most closely associated GAAP measures, net income (loss) for Adjusted EBITDA and CAFD and operating income for Total Segment Profit.

Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for selected items that SemGroup believes impact the comparability of financialresults between reporting periods. In addition to non-cash items, we have selected items for adjustment to EBITDA which management feels decrease the comparability of ourresults among periods. These items are identified as those which are generally outside of the results of day to day operations of the business. These items are not considered non-recurring, infrequent or unusual, but do erode comparability among periods in which they occur with periods in which they do not occur or occur to a greater or lesser degree.Historically, we have selected items such as gains on the sale of NGL Energy Partners LP common units, costs related to our predecessor’s bankruptcy, significant businessdevelopment related costs, significant legal settlements, severance and other similar costs. Management believes these types of items can make comparability of the results of dayto day operations among periods difficult and have chosen to remove these items from our Adjusted EBITDA. We expect to adjust for similar types of items in the future. Althoughwe present selected items that we consider in evaluating our performance, you should be aware that the items presented do not represent all items that affect comparabilitybetween the periods presented. Variations in our operating results are also caused by changes in volumes, prices, mechanical interruptions and numerous other factors. We do notadjust for these types of variances.

CAFD is based on Adjusted EBITDA, as defined above, and reduced for cash income taxes, cash interest expense, preferred stock cash dividends and maintenance capitalexpenditures, as adjusted for selected items which management feels decrease the comparability of results among periods. CAFD is a performance measure utilized bymanagement to analyze our performance after the payment of cash taxes, servicing debt obligations and making sustaining capital expenditures.

Total Segment Profit represents revenue, less cost of products sold (exclusive of depreciation and amortization) and operating expenses, plus equity earnings and is adjusted toremove unrealized gains and losses on commodity derivatives and to reflect equity earnings on an EBITDA basis. Reflecting equity earnings on an EBITDA basis is achieved byadjusting equity earnings to exclude our percentage of interest, taxes, depreciation and amortization from equity earnings for operated equity method investees. For our investmentin NGL Energy, we exclude equity earnings and include cash distributions received. Segment profit is the measure by which management assess the performance of our reportablesegments.

These measures may be used periodically by management when discussing our financial results with investors and analysts and are presented as management believes theyprovide additional information and metrics relative to the performance of our businesses. These non-GAAP financial measures have important limitations as analytical tools becausethey exclude some, but not all, items that affect the most directly comparable GAAP financial measures. You should not consider non-GAAP measures in isolation or as substitutesfor analysis of our results as reported under GAAP. Management compensates for the limitations of our non-GAAP measures as analytical tools by reviewing the comparable GAAPmeasures, understanding the differences between the non-GAAP measure and the most comparable GAAP measure and incorporating this knowledge into its decision-makingprocesses. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating our operating results. Because allcompanies do not use identical calculations, our presentations of non-GAAP measures may be different from similarly titled measures of other companies, thereby diminishing theirutility.

SemGroup does not provide guidance for net income, the GAAP financial measure most directly comparable to the non-GAAP financial measure Adjusted EBITDA, because NetIncome includes items such as unrealized gains or losses on derivative activities or similar items which, because of their nature, cannot be accurately forecasted. We do not expectthat such amounts would be significant to Adjusted EBITDA as they are largely non-cash items.

3

Certain matters contained in this Presentation include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of theSecurities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities LitigationReform Act of 1995.

All statements, other than statements of historical fact, included in this presentation including the prospects of our industry, our anticipated financial performance, our anticipated annualdividend growth rate, management's plans and objectives for future operations, planned capital expenditures, business prospects, outcome of regulatory proceedings, market conditions,and other matters, may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assureyou that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions thatcould cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, ourability to generate sufficient cash flow from operations to enable us to pay our debt obligations and our current and expected dividends or to fund our other liquidity needs; any sustainedreduction in demand for, or supply of, the petroleum products we gather, transport, process, market and store; the effect of our debt level on our future financial and operating flexibility,including our ability to obtain additional capital on terms that are favorable to us; our ability to access the debt and equity markets, which will depend on general market conditions andthe credit ratings for our debt obligations and equity; the loss of, or a material nonpayment or nonperformance by, any of our key customers; the amount of cash distributions, capitalrequirements and performance of our investments and joint ventures; the consequences of any divestitures of non-strategic operating assets or divestitures of interests in some of ouroperating assets through partnerships and/or join ventures; the failure to realize the anticipated benefits of our acquisition of Meritage Midstream ULC and its midstream infrastructureassets through our joint venture SemCAMS Midstream ULC; the amount of collateral required to be posted from time to time in our commodity purchase, sale or derivative transactions;the impact of operational and developmental hazards and unforeseen interruptions; our ability to obtain new sources of supply of petroleum products; competition from other midstreamenergy companies; our ability to comply with the covenants contained in our credit agreements, continuing covenant agreement, and the indentures governing our notes, includingrequirements under our credit agreements and continuing covenant agreement to maintain certain financial ratios; our ability to renew or replace expiring storage, transportation andrelated contracts; the overall forward markets for crude oil, natural gas and natural gas liquids; the possibility that the construction or acquisition of new assets may not result in thecorresponding anticipated revenue increases; any future impairment of goodwill resulting from the loss of customers or business; changes in currency exchange rates; weather andother natural phenomena, including climate conditions; a cyber attack involving our information systems and related infrastructure, or that of our business associates; the risks anduncertainties of doing business outside of the U.S., including political and economic instability and changes in local governmental laws, regulations and policies; costs of, or changes in,laws and regulations and our failure to comply with new or existing laws or regulations, particularly with regard to taxes, safety and protection of the environment; the possibility that ourhedging activities may result in losses or may have a negative impact on our financial results; general economic, market and business conditions; as well as other risk factors discussedfrom time to time in our each of our documents and reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect management’s opinions only as of the date hereof.Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.

We use our Investor Relations website and social media outlets as channels of distribution of material company information. Such information is routinely posted and accessible on ourInvestor Relations website at ir.semgroupcorp.com. We are present on Twitter and LinkedIn: SemGroup Twitter and LinkedIn

Forward-Looking Information

http://ir.semgroupcorp.com

4

Transformed Portfolio Provides Strategic Platform

2016 - 2018

Simplify | Transform

2019 & Beyond

Execute | Strengthen | Deliver

• Rolled up Rose Rock Midstream MLP

• Sold non-core assets

• Acquired Gulf Coast platform

• Announced Canadian growth projects

• Deployed strategies to optimize existing assets

• Improved quality of cash flows

• Focused efforts to strengthen balance sheet

• Complete key projects

• Successfully renew contracts

• Focus on cost savings

• Continue deleveraging efforts

• Capital efficient growth around existing platforms

• Focus on project returns

• Unlock synergies in Canada and connect MidCon toGulf Coast

Completed In Focus

5

• 330 acres on Houston Ship Channel• 18.2 million barrels product storage• Connectivity to Gulf Coast refining complex• Pipeline connectivity to all major basins• Deepwater marine access• Rail and truck loading and unloading• Maurepas Pipeline serving refineries

• 5 natural gas processing plants• ~700 miles natural gas gathering pipelines• ~60 miles of liquids pipelines• 60 mmcf/d Smoke Lake Plant under construction• 200 mmcf/d Patterson Creek Plant Phase III under construction• 1.3 bcf/d total operating capacity(1) with significant sulphur recovery

• 1,000 miles gas gathering pipelines• 4 gas processing plants (600 mmcf/d total)• 680,000 dedicated gas gathering acres from key

producers

• 1,700 miles crude pipelines• 8.8 million barrels crude oil storage capacity• 245 crude oil trucks/trailers

Unique platform in liquids-rich Montney and DuvernayCANADA: SemCAMS Midstream

U.S. Liquids: Rockies/MidCon

Strategic position in North America’s largest energy complexU.S. Liquids: Gulf Coast

DJ Basin and Cushing

Diversified Operations in Strong Markets

1) Includes growth projects under construction

U.S. GAS: MidConSTACK, Mississippi Lime and Sherman, TX

6

CanadaSemCAMS Midstream

7

SemCAMS Midstream Primed for Optimization

7 1) Includes growth projects under construction

Ñ ~1.1 bcf/d operational capacity

Ñ 260 mmcf/d under construction

Growth Projects Under Construction

Gathering & Processing Assets

1.3 Bcf/d

TotalOperating

Capacity(1)

Potential Growth Projects

Operational Pipeline CapacityÑ ~700 miles of natural gas pipelines

Ñ ~60 miles of liquids pipelines

Ñ Patterson Creek Plant Phase III - 200 mmcf/d (3Q 2019)

Ñ Smoke Lake Plant - 60 mmcf/d (4Q 2019)

Ñ Pipestone Pipeline (4Q 2019)

Ñ Montney-to-Market NGL Pipeline (current open season)

Ñ Meritage Patterson Creek Plant Phase IV Processing

Ñ Pipestone Plant (regulatory permit received)

Operational Processing Capacity

Canadian Business Overview

88

Ñ Assets located in prolific liquids-rich Montney play• Situated in the Gold Creek and Karr regions

• Basin is top quartile with highly competitive well economics

• Producer IRR’s ~30% - 50% on C$50 Ed Par oil / C$2 AECO

• Significant stacked resource potential

Acreage Dedication & MVCs provide cash flow stability • 400,000 acres dedicated

• MVCs constitute ~31% of 2018E revenue

Ñ Existing 195 mmcf/d processing capacity to double • Phase III Expansion under construction

(estimated completion 3Q 2019)

• Expansion adds 200 mmcf/d capacity

Ñ Producer development plans to support future growth Ñ Service offerings continue to expand as producers accelerate development

• Emulsion handling / central delivery batteries business rapidlygrowing in Western Canada

Ñ Largest producers are private equity sponsored E&P’s highly incentivized to continue delineation of acreage and enhance value

Canadian Buisiness Overview: Patterson Creek Plant

Patterson Creek Plant

Gas ProcessingCapacity

Existing: 195 mmcf/dUnder Construction: 200 mmcf/d ~3Q 2019

Miles of Pipelines101 miles of gas gathering pipelines; 38 milesof oil gathering pipelines; 18 miles of emulsionand gas lift pipelines

InterconnectsResidue Gas: TCPL and AllianceRaw Gas: CNRLLiquids: Pembina Peace Pipeline

SemCAMS Midstream: Patterson Creek Plant

PattersonCreekAssets

9

SemCAMS Midstream - Smoke Lake Plant Producer activity driven by condensate demand Smoke Lake Plant - Duvernay Ñ 60 mmcf/d sweet & sour gas processing plant Ñ Supported by 15-year contract, 90% of capacity contracted Ñ Project cost ~ USD $50 million Ñ 6x EBITDA multipleÑ Plant completion ~ 4Q 2019

Excess sour gas processing-key competitive advantage

9

10

SemCAMS Midstream Pipestone Growth Projects Pipestone Pipeline System Ñ Construction commenced, deliver gas to our Wapiti gas plant for processing

Ñ Supported by 15-year contract

Ñ Project cost ~ USD $40 million

Ñ ~7x EBITDA multiple

Ñ Project completion ~ 4Q 2019

Ñ Received permit to construct new 280 mmcf/d gas processing plant

Ñ In discussion with multiple producers in Pipestone area to gauge interest

Ñ Condensate capacity of 20,000 bbls/d

Ñ Acid gas processed in Pipestone area will be transferred to K3 via existing SemCAMS infrastructure

Proposed Pipestone GasProcessing Plant Pipestone Pipeline

11

Ñ Joint Open Season announced August 2018 with Plains Midstream Canada

Ñ Proposed project includes utilizing existing and new pipelines to carry crude, condensate and NGLs from Pipestone area delivering to Edmonton and Fort Saskatchewan

Ñ Initial capacity 100,000 bbl/d; capacity can be increased to 200,000 bbl/d

Ñ Proposed completion ~4Q 2020

SemCAMS Midsteam Proposed Montney-to-Market Pipeline

11

Montney-to-Market Pipeline (M2M)

Growth Continues in the Condensate Rich Montney

(licensed approved)

12

U.S. Liquids

13

Rockies/DJ BasinÑ White Cliffs Pipeline - 51% ownership

• DJ Basin to Cushing, OK• Two 527-mile, 12-inch pipelines• 215,000 bpd current capacity• Currently ships two crude types

▪ DJ Basin crude/condensate▪ Kansas common

NGL Conversion Project• April 2019, one crude line taken out of service for NGL conversion

◦ Completion ~1Q 2020 (1)

Ñ Wattenberg Oil Trunkline• 75-mile, 12-inch pipeline and storage in DJ Basin• Transports Noble Energy production to White Cliffs• 360,000 barrels of storage capacity• 4-bay truck unloading facility at Briggsdale, CO

Ñ Platteville Truck Unloading Facility• 30-lane truck unloading facility• Origin of White Cliffs Pipeline• 350,000 barrels of storage capacity

U.S. Liquids: Crude Business Overview

1) See slide 15 for additional project detail

U.S. Liquids 1Q18 2Q18 3Q18 4Q18 FY 2018White Cliffs Pipeline Volumes (mbbl/d) 107 135 112 144 125

14

Ñ Cushing Storage• 7.6 million barrels of storage • Connectivity to all major inbound/outbound pipelines

Ñ Kansas/Oklahoma System • 460-mile gathering and transportation pipeline system• Connects to third-party pipelines, Kansas and

Oklahoma refineries and Cushing terminal • 560,000 barrels of storage capacity

U.S. Liquids: Crude Business Overview Midcontinent Assets Field Services

Ñ Crude Oil Trucking Fleet• Fleet of ~245 crude oil transport trucks and trailers • Servicing the Bakken, DJ/Niobrara, Eagle Ford,

STACK, Granite Wash & Mississippi Lime

U.S. Liquids 1Q18 2Q18 3Q18 4Q18 FY 2018Cushing Terminal Utilization 98% 97% 94% 98% 97%

15

DJ Basin NGL Take-Away SolutionLong-Term Contract with DCP Midstream

Project de-risks White Cliffs Pipeline & positions upside value

White Cliffs Pipeline NGL Conversion Ñ Diversify one 12” pipeline to NGL service

Ñ Supported by 50,000 bpd, 10-year contract with DCP

Ñ Transport NGLs from DJ Basin to Mt Belvieu

Ñ Capacity of 90k bpd, expandable to 120k bpd

Ñ SEMG capex spend of ~$30 to 34 million (1)

Ñ < 4x EBITDA multiple, on contracted cash flows

Ñ April 2019 - one 12" line taken out of crude service, NGL conversion project to commence

Ñ Project Completion ~ 1Q 2020

15 1) Represents SemGroup's 51% expected spend; total project spend of $60-66 million

16

Ñ Provides crude transportation services for light, “neat” grades of crude from Cushing to the Gulf Coast

Ñ Originates at SemGroup’s Cushing terminal and provides crude oil service to Gulf Coast markets by leveraging existing pipe on DCP's Southern Hills pipeline

Ñ Offers DJ Basin barrels transportation to the Gulf Coast

Ñ Provides customers access to multiple sales & delivery points on the Gulf Coast; i.e. Houston area refineries or to crude oil storage and export facilities, such as SemGroup’s HFOTCO Terminal

Ñ Open season extended, March 2019

Ñ Project Completion ~3Q 2020 (1)

Proposed Gladiator PipelineCushing to Gulf Coast Solution

DJ Basin toCushing

Gulf Coastto

1) If sufficient commitments are obtained, subject to the receipt of all of the necessary approvals and permits the proposed Gladiator Pipeline may be operational by the third quarter of 2020, following the potential construction of new NGL capacity by DCP

17

U.S. Liquids: Houston Terminal

1) HFOTCO owns two pipelines17

Ñ Land• 330 acres of waterfront land on the Houston Ship Channel

◦ 12 acres of undeveloped land at Moore RoadJunction, hub for multiple pipelines

Ñ Storage tanks• 155 tanks ranging in size from 10 to 400 mbbls• 18.2 mmbbls of storage capacity

Ñ Ship & Barge Docks• Five ship docks which can receive up to Suez-max vessels

with 45-foot draft• Seven barge docks (accommodating 23 barge

simultaneously)

Ñ Pipelines, Truck & Rail• Three crude oil pipelines to four refineries (1)

• 72 rail spots• 14 trucks spots

U.S. Liquids: Houston Terminal 1Q18 2Q18 3Q18 4Q18 FY 2018Terminal Utilization 97% 97% 96% 96% 97%

18

Strong Connectivity to the Houston Refinery Complex

18

Ñ Connects directly or indirectly to crude pipelines serving the Eagle Ford, Permian, Bakken, Midcontinent and Canada

*

*Under construction

*

Zydeco Pipeline

19

Ñ HFOTCO terminal currently services nearly 30 active customersÑ Current storage demand exceeds available tankageÑ Average customer tenure ~16 years, illustrating operational flexibility and customer serviceÑ HFOTCO terminal currently consists of 18.2 million barrels of storageÑ Strategically located asset on the Houston Ship Channel with connectivity to the largest U.S. energy hub

Nearly 90% of revenues generated by take-or-pay contracts

HFOTCO Terminal and Customers

18.2 million barrels of capacity (1)

1) Based on full year 2018 throughput

Diversification FocusÑ Nearly 2 million barrels of heated storage has been converted to crude oil since 2014Ñ Excluding crude, approximately 50% (1) of product throughput derived from non-fuel oil products, such as VGO, asphalt, carbon black and clean products

Customer Base

Crude38%

Residual Fuel31%

Other Products31%

20

HFOTCO, Moore Road Pipeline Connectivity ProjectImproves our access to various long-haul, inbound delivery systems whileadding outbound pipeline connectivity

Moore Road Pipeline Ñ Construct 36 inch, 6.4 mile pipeline

Ñ Project Cost $65 million

Ñ ~4-8x EBITDA multiple (1)

Ñ Project Completion ~ 4Q 2019

1) Moore Road Pipeline multiple range reflects anticipated benefit across HFOTCO system

Essential part of the HFOTCO Strategy, Enhances Connectivity

Moore Road Pipeline

21 1) Call price based on predetermined fixed return on Alinda’s investment, including capital contributions

Maurepas Pipeline

Ñ Maurepas Pipeline• 24-inch, 35 mile crude oil pipeline connected to

LOCAP at St. James and terminating at Norco refinery• 12-inch, 35 1/2 mile intermediates pipeline between

Convent and Norco refineries• 6-inch, 35 1/2 mile intermediates pipeline between

Norco and Convent refineries

U.S. Gulf Coast Recent Announcement - 4Q 2018

• Sold 49% interest in Maurepas for $350 million to Alinda• Transaction structured as sale of Class B interests• SEMG has 5 year call-option to acquire Alinda’s interest (1)

• Transaction valued Maurepas at ~13x

22

U.S. Gas

23

Areas of Operation

Ñ Located in liquids rich oil playsÑ Four processing facilities ~600 mmcf/d of current capacity

• ~1,000 miles of gathering pipelinesÑ STACK Canton Pipeline - delivers STACK volumes to Rose Valley plant

U.S. Gas OverviewNorthern OK Avg Processing Volumes (1) (mmcf/d)

1) U.S. gas volumes include total processed volumes - Oklahoma and Texas plants

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

287 277 265 252 305367 395 369

2017 2018

24

2019 Strategic Goals and Guidance

25

• Capture EBITDA growth from organic projects• Evaluate partner funding for new growth projects• Consider additional JVs and asset sales• Opportunistically seek other sources of cost-effective capital

Continue Deleveraging Efforts

• Expand SemCAMS Midstream JV Footprint• Montney liquids takeaway via proposed Montney to Market (M2M) Pipeline• Connect Mid-Con & Gulf Coast assets via proposed Gladiator Pipeline• Maximize export opportunities at HFOTCO to meet growing demand

• Expand Canadian system connectivity and capacity◦ Pipestone Pipeline, Patterson Creek Expansion, Smoke Lake Plant

• Conversion of White Cliffs pipe to NGL service• Increase HFOTCO connectivity via Moore Road pipeline

• Execute contract renewals across portfolio• Integrate Meritage and SemCAMS assets• Enhance HFOTCO pipeline connectivity

Capture Growth Opportunities

Complete Key Growth Projects

Commercialization & Asset Optimization

2019 Strategic Goals and PrioritiesBALANCE prudent capital management with CAPTURING strategic growth opportunities

26

($U

SD

inm

illio

ns)

2017 2018 2019E

$328

$394

($U

SD

inm

illio

ns)

2017 2018 2019E

$45

$492

$375

$262

$307

Adjusted EBITDA Guidance

2019 Guidance Highlights

Dividend GuidanceCapital Expenditures Guidance

Cash Available for Dividend Guidance

$420 - $465

2017 - 2019 CAGR of ~16%

($U

SD

inm

illio

ns)

2017 2018 2019E

$178

$210 $155 - $200

($pe

rsha

re)

2017 2018 2019E

$1.89 $1.89

Guidance Range

Guidance Range

Maintenance

Growth Capex

1) Reflects asset sales and JV transactions, see page 39 for additional detail2) Reflects SemGroup's 51% interest in SemCAMS Midstream JV

(1)

$1.82(2)

27

2018 - 2019E Adjusted EBITDA Bridge

2018 2019E

$394

2019 Financial Guidance

2019 Financial Guidance (2)

($USD in millions) Low-HighU.S. Liquids $320 - $350U.S. Gas $55 - $65Canada (100% basis) $125 - $135

Consolidated Segment Profit $500 - $550

Adjusted G&A (3) $80 - $85

Consolidated Adjusted EBITDA $420 - $465

Cash Available for Dividend (4) $155 - $200

1) Divested assets include SemMaterials Mexico and SemLogistics 2) 2019 guidance includes Meritage earnings beginning March 1, 2019 3) Adjusted for non-reoccurring items, such as non-cash equity compensation and M&A one-time transaction costs4) No material U.S. cash income taxes; expect approximately $8 million cash taxes related to Canadian intercompany debt forgiveness

$420 - 465

Lower WCPL &U.S. Gas

DivestedAssets(1)

Transformed Portfolio Driving 2019 Growth and Beyond

Full YearHFOTCO

CrudeTerminalling

Revenues

ImprovedMarketingMargins

MeritageAcquisition

& NewWapiti Plant

Guidance Range

28

2019 Operational Guidance AssumptionsGuidance Capacity Notes

U.S. LiquidsHFOTCO Storage Utilization 97% - 99% 18.2 mm

Cushing Storage Utilization 95% - 97% 7.6 mm Regulatory tank inspections begin in 2019

White Cliffs Pipeline Crude Volumes (mbbl/d) (6) 120 - 125 90 + Partial capacity out of service April 2019 (NGL conversion)

U.S. GasGas Processing Volumes (mmcf/d) 320 - 360 595 Increased activity back half of 2019

Canada: SemCAMS Midstream JVK3, KA & West Fox Creek Plants (mmcf/d) 390 - 410 695 Legacy volumes

Wapiti Plant (mmcf/d) (4) 100 - 110 200 Volumes ramp - Exit 4Q19 >150 mmcf/d

Smoke Lake Plant (mmcf/d) 25 60 First volumes Nov 2019 at ~25 mmcf/d

Patterson Creek Plant (mmcf/d) 140 - 150 195 Volumes ramp - Exit 4Q19 ~160 mmcf/d; capacity 395 mmcf/d

2019 Operational Guidance & Key Growth ProjectsKey Growth Projects Expected

CompletionEstimated 2019

Capex Total Spend (1) EBITDA Multiple (2)

U.S. LiquidsWhite Cliffs NGL Pipeline Conversion (3) 1Q 2020 $27 $34 < 4xHFOTCO Moore Road Pipeline 4Q 2019 $62 $65 ~4x-8x

Canada: SemCAMS Midstream JVWapiti Plant (4) In service Jan 2019 $46 $250 ~7xPatterson Creek Plant Phase III 3Q 2019 $100 $210 (5) ~5-8xSmoke Lake Plant 4Q 2019 $30 $50 ~6xPipestone Pipeline 4Q 2019 $24 $40 ~7x

1) Total project spend reflects 100% basis for SemCAMS Midstream JV 2) Assumes developed multiple target3) Represents SemGroup's 51% expected spend; total project spend of $60-66 million4) Wapiti plant volumes ramp through 2020, estimated utilization of 75% by year-end 2019 and full capacity by mid-year 20205) Includes USD $110 million of 2018 capex spent prior to close6) Includes 3rd party offload capacity agreement

29

U.S. Liquids$13544%

U.S.Gas$155%

Canada$11236%

Maint$4515%

2019 Capital Expenditure Guidance

2019 U.S. Capital Expenditure Guidance($USD in millions)

U.S. Liquids $135

U.S. Gas $15

Total Growth Capital $150

Maintenance Capital $40

Total U.S. Capital $190

2019 SemCAMS Midstream JV Capital Guidance($USD in millions) Consolidated JV SemGroup 51% JV Interest

Growth Capital $220 $112

Maintenance Capital $10 $5

Total Canada Capital $230 $117

SemGroup's 2019 Capex Guidance $307

Total Capex Guidance $307 million (1)

1) Reflects SemGroup's 51% interest in SemCAMS Midstream JV

30

SemCAMS Midstream Guidance and Reporting

• Adjusted EBITDA guidance reflects Meritage ownership from the close of the acquisition (March 2019 - forward)

• JV will be fully consolidated on SemGroup's financial statements

• KKR interest reflected as non-controlling interest on SemGroup's financial statements

• SemGroup consolidated leverage ratio will reflect 100% of the JV's debt and Adjusted EBITDA

• SemGroup bank leverage ratio will not include JV debt and will reflect the 51% cash distribution as EBITDA

• SemGroup CAFD will reflect 51% interest of the JV CAFD

SemCAMS Midstream 2019 Guidance (1) ($USD)• Segment Profit of $125 - $135 million

• Growth Capex of $220 million

• Maintenance Capex of $10 million

• Minimum cash taxes

• Maintain leverage ratio between 3.0x - 3.5x

1) Guidance reflects 100% SemCAMS Midstream JV

Impact to SemGroup Consolidated Reporting

31

SemCAMS Midstream Illustrative Capital Structure

$ in millions

Assumes CAD / USD closing date exchange rate of 0.7583

1) Subject to customary post closing adjustments 2) Includes CAD $152 million capital reimbursement through closing and estimated working capital adjustment

Assets$CAD $USD

SemCAMS Valuation (1) $1,237 $938Meritage Valuation (1) (2) 646 490Other Net Assets 7 5Total Assets $1,890 $1,433

Capital Structure$CAD $USD

Common Equity - SemGroup $599 $454Common Equity - KKR 576 437Preferred Equity - KKR 300 227JV Term Loan 350 265JV Revolver 65 49

Total Capital Structure $1,890 $1,433

Cash Back to SemGroup$CAD $USD

SemCAMS Valuation $1,237 $938less SemGroup Equity (599) (454)Cash Proceeds to SemGroup $638 $484

Common Equity Ownership$CAD %

Common Equity - SemGroup $599 51%Common Equity - KKR 576 49%Total Common Equity $1,175 100%

Illustrative Structure at Close of Transaction

32

2018 Results

33

($USD in millions, except per share)

Net Income (loss) ($33.0) ($2.7) $8.4 $3.0 ($24.3) ($17.2)

Adjusted EBITDA 93.4 99.0 96.4 105.4 394.2 328.3

Cash Available for Dividends 51.3 50.6 50.8 56.9 209.6 177.5

Common Dividend declared per share $0.4725 $0.4725 $0.4725 $0.4725 $1.89 $1.82

Dividend Coverage Ratio 1.4x 1.4x 1.4x 1.5x 1.4x 1.3x

Consolidated Leverage Ratio 4.1x 5.6x 5.9x 5.3x 5.3x 5.1x

Non-GAAP financial data reconciliations are included in the appendix to this presentation

Key Highlights• Net Income down quarter over quarter reflecting higher income tax expense and foreign currency loss• Adjusted EBITDA up 9% quarter over quarter due to higher crude transportation and HFOTCO

terminalling revenues, offset by non-cash lower of cost or net realizable value inventory charge expectedto reverse 1Q 2019

• Declared quarterly common stock dividend of $0.4725 per share resulting in 1.5x coverage• Full-year 2018 dividend of $1.89 and dividend coverage of 1.4x• Elected non-cash, payment-in-kind (PIK) preferred stock dividend

Fourth Quarter and Full-Year 2018 Results1Q18 20182Q18 4Q183Q18 2017

34

($USD in millions)

U.S. Liquids (1) $68.1 $80.4 $75.5 $85.5 $309.4 $229.2Crude Transportation (2) $34.3 $37.9 $38.1 $39.8 $150.1 $133.5Crude Facilities (2) $9.3 $9.7 $8.2 $8.3 $35.5 $42.0Crude Supply & Logistics (2) ($6.6) ($2.0) ($7.0) ($2.2) ($17.8) ($7.8)HFOTCO (2) $31.0 $34.8 $36.2 $39.6 $141.6 $61.5

U.S. Gas (1) $14.3 $15.4 $19.8 $17.6 $67.1 $67.8SemGas (2) $14.3 $15.4 $19.8 $17.6 $67.1 $67.8

Canada (1) $22.1 $21.4 $20.5 $17.3 $81.3 $76.3SemCAMS (2) $22.1 $21.4 $20.5 $17.3 $81.3 $76.3

Corporate and other $11.0 ($0.1) ($0.9) ($0.2) $9.8 $33.2Total Segment Profit $115.4 $117.1 $114.9 $120.2 $467.5 $406.5

2018 Segment Profit Results

Fourth Quarter vs Third Quarter 2018• U.S. Liquids

◦ Improved marketing margins, offset by a non-cash $5.2 million lower of cost or net realizable value inventory charge expected to reverse 1Q 2019◦ Higher White Cliffs volumes as producers build shipper history ahead of one line converting to NGL◦ Full quarter of new crude storage tanks at HFOTCO

• U.S. Gas: Decreased due to lower volumes and NGL prices• Canada: Decreased due to timing of operating expense recoveries

1Q18 20182Q18 4Q183Q18 2017

1) Represents new segmentation 2) Represents prior segmentation, prospectively only new segments will be reported

35

Operational Summary

1) SemGas volumes include total processed volumes - Oklahoma and Texas plants2) SemCAMS volumes include total processed volumes - K3, KA and West Fox Creek facilities

Key Asset Volumes 1Q18 2Q18 3Q18 4Q18 FY 2018

U.S. LiquidsWhite Cliffs Pipeline Volumes (mbbl/d) 107 135 112 144 125

Cushing Terminal Utilization 98% 97% 94% 98% 97%

HFOTCO Terminal Utilization 97% 97% 96% 96% 97%

U.S. Gas (1)

Total Average Processing Volumes (mmcf/d) 305 367 395 369 359

Canada (2)

Total Average Processing Volumes (mmcf/d) 441 382 434 430 422

36

Appendix

37

Portfolio Transformation Driving Secure Cash Flows

Fee Based POP/Marketing Take-or-Pay

2016 2017 2018 2019E

89%95% 98% 97%

38%

49%58%

Over 95% of Total LTM Gross Margin from Fee Based Cash Flows

11% 5% 2% 3%

�

38

Leverage and Liquidity

($USD in millions, unaudited)Interest Rate 12/31/2018

SemGroup (B2 / B+)Revolving Credit Facility - $1.0 billion due 2021 $120

Senior unsecured notes due 2022 5.625% 400




Total SemGroup Debt $1,495

HFOTCO (Ba3 / BB-)Term Loan due 2025 5.280% 597

Hurricane Ike Bonds due 2050 3.399% 225

Total HFOTCO Debt $822

SemGroup Bank Covenant Net Leverage Ratio (1) 4.2x

Consolidated Net Leverage Ratio (2) 5.3x

Consolidated Available Liquidity (3) $943

1) SemGroup's bank covenant net leverage ratio calculated per the senior secured credit facility definitions, which includes a pro-rata portion of projected future annual EBITDA from material projects 2) Calculated as consolidated net debt to LTM consolidated leverage EBITDA. See additional information on slide 493) Available liquidity is reduced for outstanding letters of credit covenant

39

Cash Available for Dividend Description 2019 Guidance

Low High

Consolidated Adjusted EBITDA Consolidated Basis (100% SemCAMS Midstream JV & Maurepas) $420 $465

less: cash interest Consolidated Basis (100% SemCAMS Midstream JV) (159) (149)

less: maintenance capital Consolidated Basis (100% SemCAMS Midstream JV & Maurepas) (50) (50)

less: cash paid for income taxes Consolidated Basis (100% SemCAMS Midstream JV & Maurepas) (4) (4)

less: corporate preferred distribution Corporate Pref (announced 1/16/2018, 10 quarter PIK option) — —

less: noncontrolling interest 49% of SemCAMS Midstream JV & Maurepas CAFD (52) (62)

add: other non-recurring items Ex: add back taxes on gain from sale of Mexico — —

Cash Available for Dividend CAFD Total $155 $200

CAFD per share (CAFD Total / Shares Outstanding) $1.98 $2.55

Dividends Declared (Declared Dividend x Shares Outstanding) $148 $148

Dividend Coverage (CAFD Total / Dividends Declared) 1.1x 1.4x

Reporting of Cash Available for Dividend

40

Includes 100% of Adjusted EBITDA

Includes SemGroup's ownership % of JV Net Income(excludes net income attributable to noncontrolling interests)

Includes SemGroup's ownership % of JV Net Income(included in earnings from equity investments)

CAFD

100% of JV debt included, if any(fully consolidated on balance sheet)

Includes SemGroup's ownership % of JV Net Income+DD&A

Includes 100% of consolidated GAAP financials

No JV Debt

Includes SemGroup's ownership % of JV CAFD

Maintenance Capital

Joint Venture Reporting for Key Metrics

• SemCAMS Midstream (51%)• Maurepas Pipeline (51%)

SemGroup Controls and Fully Consolidates

Net Income

Net Income toCommon

Shareholders

Adjusted EBITDA

Debt

SemGroup Does Not Consolidate (Equity Method)

• White Cliffs Pipeline (51%)Joint Ventures

Includes 100% of JV Net Income(consolidated throughout income statement line items)

Includes SemGroup's ownership % of JV Net Income(included in earnings from equity investments)

Funded from JV operations or Equity CapitalContributions

41

Consolidated Balance Sheets

(in thousands, unaudited, condensed) December 31, 2018

December 31, 2017

ASSETSCurrent assets $715,825 $902,899Property, plant and equipment, net 3,457,326 3,315,131Goodwill and other intangible assets 622,340 655,945Equity method investments 274,009 285,281Other noncurrent assets, net 140,807 132,600Noncurrent assets held for sale — 84,961Total assets $5,210,307 $5,376,817

LIABILITIES, PREFERRED STOCK AND OWNERS' EQUITYCurrent liabilities:

Current portion of long-term debt $6,000 $5,525Other current liabilities 631,157 761,036

Total current liabilities 637,157 766,561

Long-term debt, excluding current portion 2,278,834 2,853,095Other noncurrent liabilities 94,337 85,080Noncurrent liabilities held for sale — 13,716Total liabilities 3,010,328 3,718,452

Preferred stock 359,658 —Owners' equity 1,840,321 1,658,365Total liabilities, preferred stock and owners' equity $5,210,307 $5,376,817

42

Consolidated Statements of Operations and Comprehensive Income (Loss)(in thousands, except per share amounts,unaudited, condensed) 2018 2017

Q1 Q2 Q3 Q4 FY2018 Q1 Q2 Q3 Q4 FY2017Revenues $661,609 $595,794 $633,996 $611,863 $2,503,262 $456,100 $473,089 $545,922 $606,806 $2,081,917Expenses:

Costs of products sold, exclusive of depreciationand amortization shown below 496,132 412,089 468,871 446,003 1,823,095 348,998 340,107 398,252 427,534 1,514,891Operating 69,791 90,245 64,835 59,898 284,769 52,083 73,346 62,666 66,669 254,764General and administrative 26,477 22,886 21,904 20,301 91,568 21,712 26,819 38,389 26,859 113,779Depreciation and amortization 50,536 51,755 53,598 53,365 209,254 24,599 25,602 50,135 58,085 158,421Loss (gain) on disposal or impairment, net (3,566) 1,824 (383) (1,438) (3,563) 2,410 (234) 41,625 (30,468) 13,333Total expenses 639,370 578,799 608,825 578,129 2,405,123 449,802 465,640 591,067 548,679 2,055,188

Earnings from equity method investments 12,614 14,351 14,528 16,179 57,672 17,091 17,753 17,367 15,120 67,331Operating income (loss) 34,853 31,346 39,699 49,913 155,811 23,389 25,202 (27,778) 73,247 94,060Other expenses, net 44,805 37,685 33,935 40,410 156,835 33,571 11,966 28,574 39,487 113,598Income (loss) from continuing operations beforeincome taxes (9,952) (6,339) 5,764 9,503 (1,024) (10,182) 13,236 (56,352) 33,760 (19,538)Income tax expense (benefit) 23,083 (3,613) (2,697) 6,531 23,304 95 3,625 (37,249) 31,141 (2,388)Net income (loss) (33,035) (2,726) 8,461 2,972 (24,328) (10,277) 9,611 (19,103) 2,619 (17,150)Less: net income attributable to noncontrollinginterest — — — 2,421 2,421 — — — — —Net income (loss) attributable to SemGroup (33,035) (2,726) 8,461 551 (26,749) (10,277) 9,611 (19,103) 2,619 (17,150)Less: cumulative preferred stock dividends 4,832 6,211 6,317 6,430 23,790 — — — — —Net income (loss) attributable to commonshareholders ($37,867) ($8,937) $2,144 ($5,879) ($50,539) ($10,277) $9,611 ($19,103) $2,619 ($17,150)Net income (loss) ($33,035) ($2,726) $8,461 $2,972 ($24,328) ($10,277) $9,611 ($19,103) $2,619 ($17,150)Other comprehensive income (loss), net of incometaxes 18,171 6,180 3,352 (25,149) 2,554 6,033 8,952 9,230 (4,102) 20,113Comprehensive income (loss) ($14,864) $3,454 $11,813 ($22,177) ($21,774) ($4,244) $18,563 ($9,873) ($1,483) $2,963Net income (loss) per common share:

Basic ($0.48) ($0.11) $0.03 ($0.08) ($0.65) ($0.16) $0.15 ($0.25) $0.03 ($0.24)Diluted ($0.48) ($0.11) $0.03 ($0.08) ($0.65) ($0.16) $0.15 ($0.25) $0.03 ($0.24)

Weighted average shares (thousands):Basic 78,198 78,319 78,353 78,378 78,313 65,692 65,749 75,974 78,189 71,418Diluted 78,198 78,319 78,977 78,378 78,313 65,692 66,277 75,974 78,749 71,418

43

Non-GAAP Adjusted EBITDA Calculation

(in thousands, unaudited) 2018 2017Reconciliation of net income to AdjustedEBITDA: Q1 Q2 Q3 Q4 FY2018 Q1 Q2 Q3 Q4 FY2017Net income (loss) ($33,035) ($2,726) $8,461 $2,972 ($24,328) ($10,277) $9,611 ($19,103) $2,619 ($17,150)

Add: Interest expense 42,461 35,904 35,318 36,031 149,714 13,867 13,477 32,711 42,954 103,009Add: Income tax expense (benefit) 23,083 (3,613) (2,697) 6,531 23,304 95 3,625 (37,249) 31,141 (2,388)Add: Depreciation and amortization expense 50,536 51,755 53,598 53,365 209,254 24,599 25,602 50,135 58,085 158,421

EBITDA 83,045 81,320 94,680 98,899 357,944 28,284 52,315 26,494 134,799 241,892Selected Non-Cash Items and

Other Items Impacting Comparability 10,326 17,690 1,771 6,453 36,240 32,383 13,095 64,239 (23,306) 86,411Adjusted EBITDA $93,371 $99,010 $96,451 $105,352 $394,184 $60,667 $65,410 $90,733 $111,493 $328,303

Selected Non-Cash Items andOther Items Impacting ComparabilityLoss (gain) on disposal or impairment, net ($3,566) $1,824 ($383) ($1,438) ($3,563) $2,410 ($234) $41,625 ($30,468) $13,333Foreign currency transaction loss (gain) 3,294 2,314 (983) 4,876 9,501 — (1,011) (747) (2,951) (4,709)Adjustments to reflect equity earnings on anEBITDA basis 4,883 4,886 4,926 4,837 19,532 6,709 6,692 6,678 6,811 26,890M&A transaction related costs 1,156 648 290 1,058 3,152 — 5,453 14,886 1,649 21,988Pension plan curtailment loss (gain) — — — — — — — (3,097) 89 (3,008)Employee severance and relocation expense 137 211 43 758 1,149 558 312 104 720 1,694Unrealized loss (gain) on derivative activities 2,226 4,409 (4,860) (6,828) (5,053) 27 (928) 1,833 (892) 40Non-cash equity compensation 2,196 3,398 2,738 3,190 11,522 2,757 2,803 2,957 1,736 10,253Loss on early extinguishment of debt — — — — — 19,922 8 — — 19,930Selected Non-Cash items and

Other Items Impacting Comparability $10,326 $17,690 $1,771 $6,453 $36,240 $32,383 $13,095 $64,239 ($23,306) $86,411

44

Non-GAAP Adjusted EBITDA Calculation

(in thousands, unaudited) 2016Reconciliation of net income to Adjusted EBITDA: Q1 Q2 Q3 Q4 FY2016Net income (loss) ($4,893) $10,787 ($4,632) $12,000 $13,262

Add: Interest expense 17,577 18,011 18,517 8,545 62,650Add: Income tax expense (benefit) (21,407) 4,658 11,898 16,119 11,268Add: Depreciation and amortization expense 24,051 25,055 24,922 24,776 98,804

EBITDA 15,328 58,511 50,705 61,440 185,984Selected Non-Cash Items and

Other Items Impacting Comparability 62,340 9,121 20,585 4,765 96,811Adjusted EBITDA $77,668 $67,632 $71,290 $66,205 $282,795

Selected Non-Cash Items andOther Items Impacting ComparabilityLoss on disposal or impairment, net $13,307 $1,685 $1,018 $38 $16,048Loss (income) from discontinued operations, net of incometaxes 2 2 (3) — 1Foreign currency transaction loss 1,469 1,543 659 1,088 4,759Adjustments to reflect equity earnings on an EBITDA basis 9,221 7,138 7,321 5,077 28,757Remove loss (gain) on sale or impairment of NGL units 39,764 (9,120) — — 30,644M&A transaction related costs — — 3,269 — 3,269Employee severance and relocation expense 259 836 534 499 2,128Unrealized loss (gain) on derivative activities (4,548) 4,477 6,167 (5,107) 989Non-cash equity compensation 2,866 2,560 1,620 3,170 10,216Selected Non-Cash items and

Other Items Impacting Comparability $62,340 $9,121 $20,585 $4,765 $96,811

45

(in thousands, unaudited) 2018 2017Segment Profit: Q1 Q2 Q3 Q4 FY2018 Q1 Q2 Q3 Q4 FY2017

U.S. Liquids $68,056 $80,393 $75,500 $85,474 $309,423 $35,387 $36,336 $70,202 $87,283 $229,208U.S. Gas 14,277 15,437 19,754 17,602 67,070 18,227 19,483 15,555 14,540 67,805Canada 22,113 21,448 20,543 17,226 81,330 16,865 19,038 16,704 23,667 76,274Corporate and other 10,963 (172) (913) (152) 9,726 8,367 8,296 8,421 8,152 33,236

Total Segment Profit 115,409 117,106 114,884 120,150 467,549 78,846 83,153 110,882 133,642 406,523Less:

General and administrative expense 26,477 22,886 21,904 20,301 91,568 21,712 26,819 38,389 26,859 113,779Other income (950) (533) (400) (497) (2,380) (218) (508) (3,390) (516) (4,632)Pension curtailment gain (loss) — — — — — — — 3,097 (89) 3,008

Plus:M&A related costs 1,156 648 290 1,058 3,152 — 5,453 14,886 1,649 21,988Employee severance and relocation 137 211 43 758 1,149 558 312 104 720 1,694Non-cash equity compensation 2,196 3,398 2,738 3,190 11,522 2,757 2,803 2,957 1,736 10,253

Consolidated Adjusted EBITDA $93,371 $99,010 $96,451 $105,352 $394,184 $60,667 $65,410 $90,733 $111,493 $328,303

Segment Profit and Adjusted EBITDA

46

Segment Profit Under Prior Segmentation

(in thousands, unaudited) 2018 2017Segment Profit: Q1 Q2 Q3 Q4 FY2018 Q1 Q2 Q3 Q4 FY2017

Crude Transportation $34,310 $37,865 $38,135 $39,794 $150,104 $28,251 $29,028 $34,585 $41,641 $133,505Crude Facilities 9,341 9,683 8,209 8,244 35,477 9,564 9,481 8,806 14,116 41,967Crude Supply and Logistics (6,583) (1,959) (7,005) (2,252) (17,799) (2,428) (2,173) (1,693) (1,506) (7,800)HFOTCO 30,988 34,804 36,161 39,688 141,641 — — 28,504 33,032 61,536SemGas 14,277 15,437 19,754 17,602 67,070 18,227 19,483 15,555 14,540 67,805SemCAMS 22,113 21,448 20,543 17,226 81,330 16,865 19,038 16,704 23,667 76,274Corporate and other 10,963 (172) (913) (152) 9,726 8,367 8,296 8,421 8,152 33,236

Total Segment Profit 115,409 117,106 114,884 120,150 467,549 78,846 83,153 110,882 133,642 406,523Less:

General and administrative expense 26,477 22,886 21,904 20,301 91,568 21,712 26,819 38,389 26,859 113,779Other income (950) (533) (400) (497) (2,380) (218) (508) (3,390) (516) (4,632)Pension curtailment gain (loss) — — — — — — — 3,097 (89) 3,008

Plus:M&A related costs 1,156 648 290 1,058 3,152 — 5,453 14,886 1,649 21,988Employee severance and relocation 137 211 43 758 1,149 558 312 104 720 1,694Non-cash equity compensation 2,196 3,398 2,738 3,190 11,522 2,757 2,803 2,957 1,736 10,253

Consolidated Adjusted EBITDA $93,371 $99,010 $96,451 $105,352 $394,184 $60,667 $65,410 $90,733 $111,493 $328,303

47

Reconciliation of Operating Income to Total Segment Profit

(in thousands, unaudited) 2018 2017Q1 Q2 Q3 Q4 FY2018 Q1 Q2 Q3 Q4 FY2017

Operating income (loss) $34,853 $31,346 $39,699 $49,913 $155,811 $23,389 $25,202 ($27,778) $73,247 $94,060Plus:

Adjustments to reflect equity earnings onan EBITDA basis 4,883 4,886 4,926 4,837 19,532 6,709 6,692 6,678 6,811 26,890Unrealized loss (gain) on derivatives 2,226 4,409 (4,860) (6,828) (5,053) 27 (928) 1,833 (892) 40General and administrative expense 26,477 22,886 21,904 20,301 91,568 21,712 26,819 38,389 26,859 113,779Depreciation and amortization 50,536 51,755 53,598 53,365 209,254 24,599 25,602 50,135 58,085 158,421Loss (gain) on disposal or impairment, net (3,566) 1,824 (383) (1,438) (3,563) 2,410 (234) 41,625 (30,468) 13,333

Total Segment Profit $115,409 $117,106 $114,884 $120,150 $467,549 $78,846 $83,153 $110,882 $133,642 $406,523

48

Cash Available for Dividends(in thousands, unaudited) 2018 2017

Q1 Q2 Q3 Q4 FY2018 Q1 Q2 Q3 Q4 FY2017Adjusted EBITDA $93,371 $99,010 $96,451 $105,352 $394,184 $60,667 $65,410 $90,733 $111,493 $328,303

Less: Cash interest expense 32,530 34,870 36,377 35,372 139,149 17,976 18,396 29,621 35,203 101,196 Less: Maintenance capital 7,729 11,550 8,635 8,664 36,578 8,272 11,850 12,693 9,597 42,412 Less: Cash paid for income taxes 1,800 12,900 600 1,500 16,800 1,155 1,721 196 4,088 7,160

Less: Distributions to noncontrolling interests(1) — — — 2,932 2,932 — — — — —Less: Preferred stock dividends(2) — — — — — — — — — —

Selected items impacting comparability: Add back: Mexico disposal cash taxes — 10,955 — — 10,955 — — — — —Cash available for dividends $51,312 $50,645 $50,839 $56,884 $209,680 $33,264 $33,443 $48,223 $62,605 $177,535

Dividends declared $37,004 $37,022 $37,022 $37,034 $148,082 $29,584 $35,171 $35,184 $36,961 $136,900

Dividend coverage ratio 1.4x 1.4x 1.4x 1.5x 1.4x 1.1x 1.0x 1.4x 1.7x 1.3x

1) Distributions to noncontrolling interest represents Alinda’s 49% interest in Maurepas Pipeline and will also include KKR's 49% interest in SemCAMS Midstream joint venture2) To date preferred stock dividends have been paid-in-kind

49

Reconciliation of Adjusted EBITDA to Pro Forma Consolidated Leverage EBITDA

(in millions, unaudited)

Adjusted EBITDA4Q18 $105.43Q18 96.42Q18 99.01Q18 93.4

LTM Adjusted EBITDA 394.2Adjustments 22.7

LTM Consolidated Leverage EBITDA $416.9

Acquisition / divestitures adjustment(1) (28.7)Material projects adjustment(2) 35.2Tax adjustment 13.2Miscellaneous adjustment 3.0Total Adjustments(3) $22.7

1) Includes proforma LTM results for SemMexico, SemLogistics and Maurepas 49% minority interest divestitures 2) Pro-rata portion of projected future annual EBITDA from material projects 3) Consistent with adjustments permitted under SemGroup's senior secured credit facility

Documents

SemGroup Investor Presentation March 2019s21.q4cdn.com › ... › SemGroup-Investor-Presentation-March-2019_FI… · We use our Investor Relations website and social media outlets